Stock market down 416 points...why?

On Tuesday February 27, the Dow Jones Industrial Average went down 416 points, or 3.29 percent, the biggest drop since Septermber 11, 2001. Invesors lost an estimated $613 billion on that day. The Dow actually feel to as low as 500 points but recovered to 416. Analysis speclate that the drop was a reaction to the huge market correction in the Chinese stock market. However, many believe that the drop was due to a computer glitch. A glitch prevented kept some trades from being immediately reflected in the index. Dow Jones & Co. blamed the problem on the record volume at the NYSE, and switched to a backup computer.

Despite its immediate servrity, the drop was not significant enough to make the top 20 list of drops since 1950. This drop is nothing in comparison to the stock market crash of 1987. On Black Monday, the Dow Jones lost 22.6% of its value, and in 2002, the market lost 4% of its value on two occations.

I think this is a good opertunity to buy stocks because they will sell at such a low price. Though no one will ever know when the stock market is about to crash its still good to put it a little investment because you never know when it will go up.